THE HIDDEN DRAGON
❖ The reading tells us about china, how it has developed itself so fast (rapidly) in the world market especially after joining the world trade organization in December 2001.
❖ It also explains how china has entered the foreign markets and has been successful in capturing the market share through it cheap labor, new improved better marketing skills and new technologies in research and development (especially in those areas which they lack).
❖ China has entered the foreign market and kept their rivals behind by entering those areas, which their competitors have never thought off and which are of low profit margins e.g. Haier. In doing so the government has also played a major role by encouraging those companies who want to go global and establish their brand names overseas. Thus china has been successful in obtaining the market niche in the private, public sector and even foreign shareholders.
❖ One of the major reasons why china is being successful globally is it has got hybrid or mixed ownership which allows them to overcome their weakness and also government does not get in their way but instead gives subsidies and helps in getting bank loans and licenses and as a result of this they are able to obtain independence in their market which proves to me a major reason of their success.
❖ China through its owned research institutes has entered the emerging institutes and has taken on the world market by bringing together small, specialized companies which are located nearby. But it is finding hard to enter in highly segmented markets because they lack the understanding of different cultures, their taste i.e. what they like and dislike and the customer habits.e.g cosmetics.
❖ China has got a span of dedicated exporters who contribute a lot in the global success. They first enter the mass markets and break them because of their cheap labor, and then through their developed expertise and...
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